Tesco is closing its 298,820 sq ft warehouse on the Stakehill Industrial Estate in Middleton and relocating work to Widnes.
The twenty year old warehouse handles chilled and cold storage distribution for the North West and is due to close in July. A total of 620 staff will be affected by the relocation, but Tesco said they will be offered work at other sites.
The 528,000 sq ft chilled distribution facility in Widnes is part of Stobart's Mersey Multimodal Gateway, 3MG, which provides service to a range of customers. Last year, Stobart borrowed £29m in the form of an asset-backed loan to finish work on the facility which was completed in July.
The Tesco move means logistics giant Eddie Stobart, part of Stobart Group, is taking over a distribution contract from Wincanton.
Tesco Distribution signed a 35-year lease on the Middleton distribution centre, which still has 14 years to run, after the freehold was bought for £28m by the Starion Group from Prupim.
Tesco regards the Middleton site too small with not much room to expand.